After the RBI’s announcement for banks to provide 6-months moratorium to the customers during lockdown due to coronavirus pandemic, the Central Bank of India is allowing moratorium of 6 months on payment of instalments of Term Loans, including:
The relief is provided for payments falling due between 01.03.2020 and 31.08.2020. The repayment schedule of such loans and the remaining tenure will be shifted across the board by three months post the moratorium period. However, the interest will continue to accrue on the outstanding amount of the term loans during the said moratorium period.
RBI has announced these regulatory measures to lessen the burden of debt servicing brought by disruptions caused due to COVID-19 pandemic and to ensure there is continuity of viable businesses. The regulatory body felt that there can be a temporary disruption in the cash flows and even a loss of income for the businesses/ individuals in some cases. The present measures can bring a temporary relief to those businesses/ individuals.
All Term Loans, including Retail Loans, Agricultural Term Loans, Crop Loans, & loans under Pool Purchases as well as Cash Credit/Overdraft are eligible for availing the benefits under the package.
Yes, it will be applicable for all Term Loans in all the segments.
The overdue payments post 01.03.2020 will not be reported to Credit Bureaus for 6 months and penal charges will be levied by the bank. However, any delay in payment will lead to default and will get reported to Credit Bureaus.
This relief is available for Credit Card payments as well.
Please get in touch with the bank for the revised mandate.